Retail Stocks Walmart, Target, Home Depot To Report; Tesla AI Day Due


Here’s your Investing Action Plan: what you need to know as an investor for the coming week. Retail stocks will be in focus as Walmart, Target and Home Depot report Q2 results. China stocks will also have a busy week of quarterly earnings. Meanwhile, Tesla will hold an artificial intelligence event as it further develops its driver-assistance technology.

Stocks To Watch

Disney (DIS) bounced off 50-day line but has pared gains. Breaking resistance at 186.29 or today’s high of 187.58 would offer early entries. Element Solutions (ESI) is near a 24.80 buy point but already actionable from Thursday’s bounce off the 50-day line and clearing short-term resistance just above 24. Mercado Libre (MELI) is working on 2,020.10 official buy point but is buyable now after retaking an Aug. 5 post-earnings gap’s high of 1,812.95. Shopify (SHOP) has been choppy but is close to getting back above a 1,499.85 buy point. RH (RH) slipped back below a 724.11 cup-with-handle buy point today, but in lighter volume.

Walmart, Target Lead Retail Earnings

Walmart (WMT) reports early Tuesday, with results from Target (TGT) due early Wednesday. Wall Street expects Walmart to earn $1.56 per share, unchanged from a year ago, with sales dipping 0.8% to $136.6 billion. Target is expected to increase EPS 3% to $3.49, with sales up 9% to $24.95 billion. Meanwhile, TJX (TJX) reports early Wednesday, Ross Stores (ROST) reports late Thursday and BJ’s Wholesale Club (BJ) reports early Thursday

Home Improvement Giants Due

Home Depot (HD) will report early Tuesday. Analysts expect EPS to grow 10% year over year to $4.43 on a 6.6% increase in sales to $40.6 billion. Rival Lowe’s (LOW) reports early Wednesday. Analysts see EPS of $3.99, up 6.4%, while sales slip 2% to $26.7 billion. Spending on home improvement has tapered off as consumers spend elsewhere. Still demand for home improvement materials remain high as supply chain issues persist and homebuilding remains robust amid low borrowing rates.

Tencent Tops Big Week For China Stocks

Numerous Chinese companies, which have been under heavy pressure by government regulators, report quarterly results in the coming week. The largest is Internet giant Tencent Holdings (TCEHY), which reports Wednesday morning. The consensus is for EPS to rise 6% to 52 cents on revenue of $21.5 billion, up 30%. Tencent Music (TME) reports late Monday. Huya (HUYA), the livestreaming company, reports Tuesday morning. E-commerce company Vipshop (VIPS) reports Wednesday morning. Video sharing website Bilibili (BILI) reports Thursday morning, as does e-commerce solutions company Baozun (BZUN).

Tesla To Hold AI Day

The EV maker is hosting AI Day on Thursday. The invite-only event will include a keynote by CEO Elon Musk, hardware and software demos from Tesla (TSLA) engineers, and test rides in Model S Plaid. The event is billed as a showcase of the company’s progress in the use of artificial intelligence beyond its vehicle fleet. Musk has tweeted the goal is to recruit talent. The invitation reportedly features a photo of custom stack of computer hardware likely in reference to Tesla’s neural networking training supercomputer, Project Dojo. Despite Musk’s touting of its Full Self-Driving feature for Tesla vehicles, the company admits in SEC filings its system is not yet autonomous. Experts say it’s unlikely the technology will be available for some years.

Nvidia Near Buy Point Ahead Of Earnings

The graphics-chip maker will report late Wednesday. Analysts expect EPS to jump 85% to $1.02 as sales surge 64% to $6.32 billion. The upside is likely capped by supply constraints at its chip foundries. Meanwhile, the U.K. is reportedly considering blocking Nvidia’s (NVDA) proposed $40 billion takeover of Arm on national security grounds. The stock is approaching a buy point of 208.85 out of a flat base as Wall Street remains bullish.

Other Earnings

  • Canoo (GOEV) will report after the market closes Monday. Analysts see the electric vehicle startup reporting a loss of 36 cents per share with no revenue.
  • Agilent (A) reports fiscal Q3 results late Tuesday, and Wall Street sees the scientific instrument maker’s EPS rising 27% to 99 cents with sales up 22% to $1.54 billion.
  • Applied Materials (AMAT) will post fiscal Q3 results late Thursday, and the semiconductor equipment supplier’s EPS is seen up 67% to $1.77 as sales climb 35% to $5.94 billion.
  • Deere (DE) will report fiscal Q3 results before the market opens Friday. Analysts see farm and construction equipment maker reporting a 78% jump in EPS to $4.58 with sales soaring 145% to $10.3 billion.

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